Xiaomi's second electric vehicle is about to be released. Which supply chain companies in the A-share market will benefit the most?
According to news from Chasing Wind Trading Platform, on May 22, Morgan Stanley released a research report stating that Xiaomi's second electric vehicle - the YU7 SUV will officially launch in July 2025.
Morgan Stanley believes that the automotive parts supplier FORYOU will become the biggest beneficiary of this release. In addition, Tuopu Group, Desay SV, and Xingyu Co., Ltd. are also expected to benefit.
<h2>1. Biggest Winner: FORYOU (002906.SZ)</h2>
Morgan Stanley pointed out that the automotive parts supplier FORYOU will become the biggest beneficiary of this release.
This is because the Xiaomi YU7 will be equipped with a panoramic head-up display (P-HUD) called &#34;HyperVision&#34; (see the image below), and the supplier is FORYOU.
In Xiaomi's first car, the SU7, the HUD module was not supplied by FORYOU, making this entry significant.
Morgan Stanley estimates that this project will bring an annual revenue growth of 10%-15% for FORYOU.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/305a5c49-cf59-468e-9d15-4dd681583f45.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/305a5c49-cf59-468e-9d15-4dd681583f45.png"/>
In January 2025, BMW showcased its panoramic vision head-up display system at the 2025 Consumer Electronics Show (CES), which will start being used by the end of 2025, although this system is not supplied by FORYOU. Morgan Stanley expects that if other automakers follow Xiaomi and BMW in adopting P-HUD in new models, FORYOU will have greater growth potential.
<h2>2. Other Key Beneficiaries</h2>
Morgan Stanley stated that in addition to FORYOU, several other companies will benefit from the release of the Xiaomi YU7:
1) Tuopu Group (601689.SS)
Tuopu Group supplies air suspension systems for both the SU7 and YU7 models, contributing approximately RMB 6,000 to 8,000 in value per vehicle.
2) Desay SV (002920.SZ)
As the YU7 uses NVIDIA Thor chips for autonomous driving, Morgan Stanley believes that Desay SV is likely to become the supplier of the YU7's autonomous driving domain controller.
3) Xingyu Co., Ltd. (601799.SS)
Although it does not supply the Xiaomi YU7, there is a high probability of receiving orders for future Xiaomi models.
Morgan Stanley pointed out that as long as the YU7 performs better than expected upon launch, if Xiaomi's offline channels expand quickly in China, and if its market share overseas continues to rise, there is still potential for &#34;upside surprises&#34; in Xiaomi's stock price.
Although there are many opportunities, Morgan Stanley also warns of risks, including that the electric vehicle market will continue to be fiercely competitive in 2025; if Xiaomi's smartphone sales fall short of expectations, the company may reduce prices to clear inventory, which could compress profit margins; and if concerns about excessive investment in smart electric vehicles increase, it may also dampen market confidence

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Morgan Stanley pointed out that Xiaomi's second electric vehicle, YU7, will officially launch in July 2025, and related A-share supply chain companies are expected to benefit from it. Among them, FORYOU will become the biggest beneficiary, as it will be the first to provide Xiaomi YU7 with a panoramic head-up display (P-HUD) system named "HyperVision." This project is expected to bring an annual revenue growth of 10% to 15% for FORYOU. In addition, Tuopu Group, Desay SV, and Xingyu Co., Ltd. are also considered other key beneficiaries of this new vehicle launch

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"YU7 concept stocks" are out! Xiaomi YU7 has just debuted, and Morgan Stanley has compiled a list of beneficiaries